Funding Circle Secures £700 Million Forward Flow Deal with Waterfall Asset Management
Event summary
- Funding Circle has secured a £700 million forward flow commitment from Waterfall Asset Management over two years, with senior financing from Citi.
- Waterfall is also purchasing a c.£120 million existing loan portfolio from Funding Circle.
- The deal marks a transition from balance sheet to institutional funding for Funding Circle’s shorter-term loan product.
- Waterfall has surpassed £3 billion in total lending through Funding Circle’s platform since their initial partnership in 2018.
The big picture
This deal underscores Funding Circle’s strategy of testing new propositions on its balance sheet before scaling with institutional partners. The £700 million commitment strengthens its funding position as a platform lender, aligning with broader industry trends toward institutional funding in the SME finance sector. Waterfall’s deepened relationship reflects confidence in Funding Circle’s technology and credit assessment capabilities, while Citi’s involvement highlights the growing role of senior financing in alternative lending.
What we're watching
- Funding Strategy
- How Funding Circle will allocate the £700 million to meet growing SME credit demand.
- Partnership Dynamics
- Whether Waterfall’s continued investment signals long-term confidence in Funding Circle’s credit underwriting.
- Market Expansion
- The pace at which Funding Circle scales its shorter-term loan product with institutional backing.
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